(Art. 19 FinIA)
The portfolio manager shall ensure that the assets entrusted to it for management are held in safekeeping, segregated per client, with a bank pursuant to the BankA14, a securities firm pursuant to the FinIA, a trading facility for distributed ledger technology securities (DLT trading facility) in accordance with the FinMIA15 or other institution that is subject to supervision equivalent to that in Switzerland.16
It shall manage the assets on the basis of authorisation given in writing or in another form demonstrable via text. The authorisation must be limited to administrative acts. If the portfolio manager is entrusted with the provision of further services which require more far-reaching authorisations, it shall document the basis of these activities.
Portfolio managers shall take measures to avoid a break-off of contact with clients and to prevent client relationships from becoming dormant. If a business relationship becomes dormant, the portfolio manager shall take suitable steps to ensure that dormant assets are delivered to beneficiaries.
Paragraph 2 applies by analogy to trustees. Moreover, trustees must, within the framework of the law applicable to the trust:
act in the best possible interests of beneficiaries and with the required level of skill, care and diligence;
take appropriate organisational precautions to avoid conflicts of interest or disadvantages for beneficiaries as a result of conflicts of interest.
If the provision of additional services increases the risks to which portfolio managers and trustees are exposed, this must be taken into account within the scope of supervision (Articles 61 and 62 FinIA).